You are experiencing what many fall victim to in the DSCR world when certain loan officers or banks try and broker DSCR loans when they are not well versed.A DSCR loan has to be underwritten up front by the Banker or Loan officer and many fail to run the numbers correctly or at all.

My hangup is that even though the HOA is not allocating $85k for the reserved this year, they will have over $200k in reserves (over 20% of the $850k budget) Everything else has been cleared by the underwriter (insurance policy, occupancy rate, ect..) but I am concerned this deal will fall through because of this issue. 

It's about understanding what falls into 5 year, 15 year, and 27.5 year life.

Fall in love with the process, and success will follow.Reflecting on the Journey:What happened to me during this full cycle, including the 3-4 years of the pandemic as a RE investor?

From that information I would think the best you can do is get a range of the ARV (say $150-$170k) and I would make sure you numbers work no matter whether the actual value falls within the range.

tty LO, the deal can take forever and possibly fall apart.I live in South Jersey, outside of Philly. 

And btw, if rates fall even more over the next year, maybe you refi down from 6.5 to say 5.5 which would make you another 4k a year in profit.What I like to do is look at the investment 10 years from now.1)  20k  Rental profit should go up from 5k to about 20k to 25k a year in year 10/11 if you figure historical rent increases out there and the fact that your mortgage stays the same - even with services like cleaning and property management going up some too. 

Pete,Mortgage rates are falling fast and the FED meets September 17th-18th and its a 99.99% they will cut the FED rate by .25. 

They want to ensure that the property NOI is amply covering your debt service, and therefore able to cover the yield on the mortgage bond / MBS.As a quick example, let's assume that your property NOI fell significantly, because you decided to simultaneously renovate 25% of the units all at once (taking them offline, and causing NOI to sharply fall for 2-3 months).

Take action and the rest will fall into place Hope this helps!